Hello everyone,
Just seeking some perspectives on my situation, would love to hear your thoughts...
I am seriously considering putting in an offer for a property on the market in the outer Eastern suburbs of Melbourne. The 2 bed unit shares a wall with the neighbouring unit, in a spacious complex of about 10 units. The list price is "Above $250,000". The original (30 year old) kitchen and bathroom need immediate repairs/renovation and rotting wooden stairs and decking in the courtyard needs replacement. I am estimating a basic renovation budget of $25,000
I believe that a fair price for the property is $230,000. However, I know that the fair price, what vendors want and what other buyers are willing to pay can be very different figures!
There were only two other parties at the OFI on Saturday, one left almost immediately and so potentially only down to me and the other party at the moment. The agent called me around 4.30 today to follow up after Saturday and asked me if I had any interest in the property. I said I really liked it, but that I am not prepared to put in an offer at the asking price. He said that he actually expected the property to sell closer to the $300k mark. As a first time buyer, I asked him if there is a guide I should use when a rough price range is listed and he said I should aim for 10% above the list price, as that would take me close to what the vendor is expecting. But for a $275k price tag, plus $25k reno's, I know I could buy a stand alone unit that is not in immediate need of renovations for the same price. Problem is that I don't want to spend $300k!
Is it worth putting in a slightly lower offer and see where it goes? A colleague suggested offering 10% under then coming up a little higher if need be... but I think that offering $240k and a 30 day settlement might sway the vendor to accept the offer? The house is being sold by an old lady moving into a nursing home (not a cover story, the decor and mobility aides in the house support that story!)
How would you play this? I am thinking of sending a friend to the OFI next Saturday to see if they get any more people in this time, then submitting an offer on Sat afternoon if the numbers were low... sneaky huh!
I don't want to rip a little old lady off, but from my research $250k + really is too much for this property..
My other alternative is just to wait and save a bigger deposit... I have $15k saved now, but it will be $20k by the end of the year. I don't have any other properties/assets, 27yrs old, 60k pa income...
Any thoughts??
Louise
Just seeking some perspectives on my situation, would love to hear your thoughts...
I am seriously considering putting in an offer for a property on the market in the outer Eastern suburbs of Melbourne. The 2 bed unit shares a wall with the neighbouring unit, in a spacious complex of about 10 units. The list price is "Above $250,000". The original (30 year old) kitchen and bathroom need immediate repairs/renovation and rotting wooden stairs and decking in the courtyard needs replacement. I am estimating a basic renovation budget of $25,000
I believe that a fair price for the property is $230,000. However, I know that the fair price, what vendors want and what other buyers are willing to pay can be very different figures!
There were only two other parties at the OFI on Saturday, one left almost immediately and so potentially only down to me and the other party at the moment. The agent called me around 4.30 today to follow up after Saturday and asked me if I had any interest in the property. I said I really liked it, but that I am not prepared to put in an offer at the asking price. He said that he actually expected the property to sell closer to the $300k mark. As a first time buyer, I asked him if there is a guide I should use when a rough price range is listed and he said I should aim for 10% above the list price, as that would take me close to what the vendor is expecting. But for a $275k price tag, plus $25k reno's, I know I could buy a stand alone unit that is not in immediate need of renovations for the same price. Problem is that I don't want to spend $300k!
Is it worth putting in a slightly lower offer and see where it goes? A colleague suggested offering 10% under then coming up a little higher if need be... but I think that offering $240k and a 30 day settlement might sway the vendor to accept the offer? The house is being sold by an old lady moving into a nursing home (not a cover story, the decor and mobility aides in the house support that story!)
How would you play this? I am thinking of sending a friend to the OFI next Saturday to see if they get any more people in this time, then submitting an offer on Sat afternoon if the numbers were low... sneaky huh!
I don't want to rip a little old lady off, but from my research $250k + really is too much for this property..
My other alternative is just to wait and save a bigger deposit... I have $15k saved now, but it will be $20k by the end of the year. I don't have any other properties/assets, 27yrs old, 60k pa income...
Any thoughts??
Louise
You should not be able to come up with a number without looking at the S32. For all you know, it could be under some strange overlay, an easement that goes right under the unit etc etc etc ....
